California Regulators Issue New Net Metering Reform Proposal

By Christian Roselund

On 10 November 2022, Regulators in California published a new proposal to reform the state’s net metering policy, which sets the terms for compensation of rooftop solar. The California Public Utilities Commission’s (CPUC) Net Billing tariff follows an earlier attempt to revise net metering that was cancelled in May 2022 after the solar industry mobilized thousands of workers and consumers in early 2022 to protest the change.

Unlike the CPUC’s previous proposal. The new draft does not impost discriminatory charges on solar customers. It does cut export rates over time to “avoided cost,” which is what the utility would otherwise pay to procure electricity. It also shifts payments to a dynamic rate based on the needs of the grid, instead of fixed time-of-use rates. Finally, the proposal includes up-front subsidies for low-income consumers to purchase solar plus battery storage or standalone battery storage systems.

According to estimates by the California Solar and Storage Association, the new export rates will cut average compensation from $0.30 per kilowatt-hour to $0.08 per kilowatt-hour.

CPUC will vote on the new proposals at its meeting on 15 December 2022.

Source: Decision Revising Net Energy Metering Tariff and Subtariffs (California Public Utilities Commission)

Analysis: CALSSA Statement on CPUC’s Revised Proposed Decision on Solar Net Metering (California Solar & Storage Association)